US President Donald Trump has granted Hungary a one-year exemption from sanctions related to its ongoing purchases of Russian oil and gas, a White House official confirmed to BBC News. This decision comes as Hungary’s Prime Minister Viktor Orban, a close ally of Trump, has maintained strong ties with Russia amid the ongoing Ukraine conflict.
During Orban’s visit to the White House on Friday, Trump expressed his understanding of Hungary’s energy challenges, stating, “It’s very difficult for him [Orban] to get the oil and gas from other areas.” This exemption follows the US blacklisting of two major Russian oil companies last month, which threatened sanctions against those who continue to purchase from them.
Hungary’s Response to Sanctions
Following the meeting, Hungarian Foreign Minister Péter Szijjártó announced on X that the U.S. had granted Budapest “a full and unlimited exemption from sanctions on oil and gas.” However, an official later clarified that this exemption is limited to one year, which represents a significant victory for Orban, who previously warned that sanctions would devastate Hungary’s economy.
Trump’s sympathetic remarks during the meeting highlighted Hungary’s status as a landlocked nation reliant on Russian energy. However, he refrained from providing a specific guarantee. Just two weeks prior, Trump had expressed a strong commitment to penalizing anyone engaging with Russian energy companies.
Economic Implications and Political Alliances
As part of the arrangement, Hungary has agreed to purchase several hundred million dollars’ worth of U.S. natural gas. However, this deal may face backlash from other European capitals, many of which oppose Hungary’s friendly relations with Moscow. Orban has long aligned himself with Trump’s populist rhetoric on immigration and social issues, which may have influenced this favorable treatment as he approaches challenging elections in the spring.
Trump also criticized other European nations for continuing to buy Russian commodities, stating he was “very disturbed” by their actions. Orban defended Hungary’s energy ties with Russia, asserting that pipelines are a “physical reality” rather than an ideological issue.
During their meeting, Trump and Orban discussed the war in Ukraine, marking their first formal engagement since Trump returned to power. Trump noted, “He [Orban] understands Putin and knows him very well,” suggesting optimism about ending the conflict soon. Orban claimed that only Hungary and the U.S. genuinely seek peace in Ukraine, while other nations mistakenly believe Ukraine can win the war.
In addition to energy sanctions, Hungary’s export-driven car industry has suffered from Trump’s tariffs on European goods, further straining its economy. Despite ongoing tensions with EU leaders over various issues, Trump urged European nations to “respect this leader very, very strongly because he’s been right on immigration.”
